THERE’S AN old Chinese proverb: An army of a thousand is easy to find, but, ah, how difficult to find a general
THERE’S AN old Chinese proverb: An army of a thousand is easy to find, but, ah, how difficult to find a general.
China’s emergence as a major global economic force will likely put pressure on the supplies of talent both within China and more broadly, an international leadership consulting firm believes.
China’s rapid economic growth (more than 8 percent a year, compared to 3.4 percent in Australia), will dramatically stretch an already ageing labour supply, fuelling intense demand and competition for talent, according to Mark Busine, general manager for DDI.
“While clearly an economic juggernaut, the future success of China’s economic prosperity will rely heavily on its ability to source quality talent, especially leadership talent,” Busine said.
“While organisations around the world face the challenge of finding leaders, cultural factors are compounding the task in China. The continuing transformation of its economy means Chinese business leaders must possess a skill set that blends new ways with the old.”
Leadership in China has long been based on a foundation of mutual respect and a feeling of connectedness among individuals. However, to compete globally, China recognises the need for organisations to develop or import leadership qualities that reach across nations and cultures.
A recent DDI report, Leadership in China: Keeping Pace With a Growing Economy, found that relatively few of China’s current pool of leaders demonstrated strengths in the most important skill areas. Almost one quarter were deemed “weak” in the most important skills needed for success, with a further 57 per cent demonstrating only adequate capability.
In addition, 55 per cent of HR professionals believe that new leaders are not adequately prepared for their roles. In some ways this is no surprise. China stopped all formal education during the years of the Cultural Revolution, losing a generation of educated leaders. To make up for this gap, at a time when leadership is critical to both economic and organisational success, Chinese companies are looking outside to import expertise.
“Australia’s prominent position in the Asia Pacific market and educated workforce suggests that it will represent a key source of talent for the growing Chinese market.
“As China continues to focus on growth, many of Australia’s top executives are likely to be lured offshore in search of greater career opportunities, unique experiences … and money. For some industries, like property and engineering, this has already started,” Busine said.
While the challenge for China is clear, there is likely to be a flow on effect in Australia where organisations will find it increasingly difficult to retain good quality leaders. As globalisation takes hold, an ever-increasing number of Australian executives will look offshore for career opportunities.
In many instances, it is simply about market size and opportunity. “For years Australians took off with backpacks to explore the world; in the future, it’s likely to be briefcases,” Busine said.
Key points
• China’s economic growth will fuel intense demand and competition for talent
• Most HR professionals believe that new leaders are not adequately prepared for their roles
• Australia’s educated workforce might represent a source of talent for China
